Consumers, investors, and technology vendors have long known the power of lithium-ion batteries, but now the world is seeing what major corporations and governments are doing to promote the technology’s use. In an often-overlooked move, 3M has recently announced a new capital raise and a strategic demerger of its businesses that are related to lithium-ion storage.
For those unfamiliar with the technology, lithium-ion batteries are portable energy sources made from rechargeable cells. They are used in several industries including consumer electronics, automotive, and industrial products. While they have been around since the 1980s, technology advancements have made lithium-ion batteries increasingly popular because of their higher energy density and efficiency compared to other types of batteries.
In its press release, 3M revealed that it has experienced strong sales of products related to lithium-ion storage, which has allowed it to capitalize on the growing demand for the technology. In order to take advantage of this growing demand, 3M conducted a capital raise of $100 million and structured a strategic technology demerger to separate its lithium-ion-related businesses.
The 3M Group’s Advance Energy Business will be responsible for the manufacture of lithium-ion batteries. It is structured as a pure-play energy business with the ability to manufacture next-generation, lithium-ion battery cell technologies.
The new capital raise and demerger of 3M is a strong endorsement of the technology behind lithium-ion batteries and reflects the positive sentiment of the technology. It also shows that major corporations are looking into using lithium-ion technology for their own needs.
The potential of lithium-ion batteries is immense, but the technology still needs to be developed further. The 3M placement and strategic demerger is an excellent beginning, and it will likely be just the first of many steps taken to get full utilization of the technology.
The technology has a vast potential for many industries, and 3M’s investment takes a giant leap in consolidating the technology’s use. As such, it stands to benefit the entire industry indirectly, from the manufacturer, to the user. This strategic move greatly encourages the further development of lithium-ion batteries, as more companies are are likely to invest in the technology. It could very well be the catalyst for a massive increase in lithium-ion battery usage.